Retail Vacancy Rates in the Second Quarter of 2009The economic crisis has of course affected differently metropolitan markets across the US, depending on the speed and magnitude of the localized economic impact. This different impact is reflected in the very wide variation of vacancy rates across 48 major retail markets for which REALTORS Commercial Alliance and REALTOR Research has reported estimates for the second quarter of 2009. Besides Honolulu and San Jose five more markets were reported by REALTORS Commercial Alliance and REALTOR Research as having a retail vacancy rate below 7% in the second quarter of 2009. These markets are San Francisco, Orange County, Salt Lake city and Long Island, and in theory have the lowest risk of registering rent declines, assuming that all other factors that affect retail rents are equal across markets. The Los Angeles retail market had also a relatively low retail vacancy rate of 8.3%. The New York retail vacancy rate was higher at 11.3%, but was still below the reported national average of 12%. Chicago, with a retail vacancy rate of 13.4% was above the national average. Besides Detroit, REALTORS Commercial Alliance and REALTOR Research reported six more markets as having a retail vacancy rate of 15% or above in the second quarter of 2009. These markets are Atlanta, Kansas City, Indianapolis, Dallas,Fort Worth, and Columbus, and in theory have the highest risk of registering rent declines, assuming that all other factors that affect retail rents are equal across markets.
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